Ahead of monetary policy review, the government today kept unchanged the interest rates on small savings schemes like Public Provident Fund (PPF), Kisan Vikas Patra and Sukanya Samriddhi for October-December quarter.
"The rates of interest on various small savings scheme for the third quarter of the financial year 2017-18 starting October 1 shall remain unchanged from those notified for the second quarter of 2017-18," the Finance Ministry said in a release.
Since April last year, interest rates of all small saving schemes have been recalibrated on a quarterly basis. The Reserve Bank of India is scheduled to undertake monetary policy review on 4 October.
Investments in the public provident fund (PPF) scheme will fetch annual rate of 7.8 per cent while Kisan Vikas Patra (KVP) investments will yield 7.5 per cent and mature in 115 months.
The one for girl child savings, Sukanya Samriddhi Account Scheme will offer 8.3 per cent annually. Similarly, the investment on 5-year Senior Citizens Savings Scheme will yield 8.3 per cent. The interest rate on the senior citizens scheme is paid quarterly.
On the basis of the decision of the government, interest rates for small savings schemes are to be notified on a quarterly basis since 1 April 2016, the ministry said while notifying the rates for third quarter of financial year 2017- 18.
While announcing the quarterly setting of interest rates, the ministry had said the rates of small saving schemes would be linked to government bond yields.
The move is expected to prompt banks to lower the deposit rate in line with the small savings rate as offered by the government. PTI
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.